CAPITALSTARS – MCX COMMODITY MARKET NEWS & LEVELS – 17 OCTOBER 2019

Gold Carves Out Modest Gains
COMEX Gold stayed weak on worries over Indian demand despite a tentative recovery in US session on weak equities. COMEX Gold futures are currently trading flat at $1491 per ounce. India’s Gold imports tanked 51.42% to Rs 9099 crore while Silver imports also fell 48% to Rs 1102 crore in September 2019. MCX Gold futures broke above Rs 38000 per 10 grams and closed at Rs 38219 per 10 grams, up 0.50% on the day. Traders are anxious about the retail demand ahead of Diwali. The US dollar index slipped sharply yesterday and currently lingers at its one month low around 98 level. This weakness in dollar can support Gold though broad selling pressure in commodities can cap losses.

IMF Expects 6.2% Drop In Prices Next Year
According to a latest update from IMF, global base metal prices declined slightly by 0.9% between February 2019 and August 2019 as continued trade policy uncertainty and fears of a global economic slowdown—especially in China—were only partially offset by supply-driven price increases in iron ore and nickel. Iron ore prices increased 6.7% between February 2019 and August 2019. Widespread disruptions—including the Vale dam collapse in Brazil and tropical cyclone Veronica in Australia— coupled with record-high steel output in China pushed iron ore prices to five-year highs during the first half of 2019.

Brent Crude Could Gradually Decline To $55 Per Barrel Over Coming Five Years Says IMF
Crude Oil prices have been relatively stable, trading within a narrow range this year despite heightened geopolitical uncertainty, the IMF noted in its World Economic Outlook yesterday. In April, they surpassed $71, their highest for 2019, and hit their recent bottom of $55 in August before rebounding back above $60 in September. Initially, prices were pushed higher by the recovery of financial conditions as well as outages in Venezuela and US tensions with Iran. But in late spring a weaker global economy raised concern about the strength of global oil demand, which was amplified by a buildup of US crude oil stockpiles.